CHENNAI: The Greater Chennai Corporation (GCC) on Tuesday passed a resolution on professional tax hike by 35 percent for salary holders earning between Rs 21,001 and Rs 60,000.
The resolution noted that every five years, the professional tax rates can be revised by the board. The revisions should not be less than 25 percent and not more than 35 percent.
The local body has increased the half yearly professional tax by 35 percent in the current fiscal year 2024 – 2025 for salaried individuals. Individuals earning Rs 21,000 to Rs 30,000 should now pay Rs 180 as professional tax from Rs 135.
The salary between Rs 30,001 and Rs 45,000 has increased from Rs 315 to Rs 430 every six months, and those who earn from Rs 45,001 to Rs 60,000 should pay Rs 930 against the previous tax of Rs 690. However, salaried persons earnings from Rs 60,001 and above 75,000 the professional tax amount remains the same as Rs 1,025 and Rs 1,250 respectively. There is no tax for below Rs 21,000 as usual.
The communist councillors opposed the professional tax hike for salaried individuals between Rs 21,001 and remains the same for high salaried people.
Since, the council passed the resolution despite opposition, the ward members of CPIM – R Jayaraman, P Vimala and M Saraswathi walked out.
In response, the GCC commissioner J Kumaragurubaran stated that the tax hike is necessary to carry out various development works in the capital city.